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Loan Help – Custom Homes

Custom Home loans are different than traditional home loans and that is reflected in the rate difference. Construction loans are seen by lenders as more risky and generally carry higher interest rates. Conventional home loans are sold on the secondary market and have to meet certain criteria before they can be sold. That makes them less risky – thus generally lower interest rates.

In most cases, those building a custom home will require two loans. The first is a construction loan to cover the expenses associated with buying the land and building the home. Two-months before the home is finished, the owner can lock in rates for a conventional home loan which replaces the construction loan at closing.

While our clients may work with any lending institution they prefer, Hibbs Homes encourages its clients to discuss financing with New Frontier Bank. Located in O’Fallon, Missouri, New Frontier finances most of our developments, and has helped our custom clients obtain construction financing. New Frontier’s rates are very competitive and decisions are usually made by bank’s Board within a few days. Hibbs Homes will gladly arrange/attend a meeting between bank officials and clients. Although Hibbs Homes recommends New Frontier Bank, we can not guarantee bank officials will approve a custom home loan for all clients.

Regardless of your lending institution, Hibbs Homes will provide the following information/services as part of its custom home package:

- Construction budgets
- Plans necessary for new construction appraisals
- Lien Wavers from subcontractors prior to payments
- Payment of subcontractors (if necessary)
- Compliance with required progress inspections

Loan Help - Conventional Mortgages

There are several advantages to being pre-approved for a home loan.

1. It gives you an idea of what price home you can afford.
2. Sellers often feel more comfortable/confident negotiating with a buyer who is pre-approved.

To assist you, we've created links to three mortgage brokers who can pre-approve you for a home loan. Speaking from experience, we can tell you that officials with The Mortgage Store and Moneytree have given us/our clients timely, professional and dependable service. However, before you visit any sites, please understand the following:

1. Hibbs Homes, LLC does not get compensated by referring clients.
2. Buyers may use lenders regardless of whether you by a Hibbs Home.
3. Hibbs Homes, LLC does not guarantee you will qualify for a home loan with either broker.
4. Buyers may use any other lender of their choosing.

Mortgage Headquarters
Traci Everman
1121 West Pearce Blvd.
Wentzville, MO 63385
636-327-HOME
e-mail: Traci@lakeloan.com
Web: http://mortgage-hq.com

MoneyTree Lending
Jason Palliser
7 Village Square
Hazelwood, MO 63042
314-551-9950
e-mail: jasonp@moneytreemortgage.biz
Web: www.moneytreemortgage.biz

Coldwell Banker Mortgage
Russ Moore
314-503-7877
Web: coldwellbankermortgage.com